Rupee falls to all-time low of 80.15 against U.S. dollar in early trade

TNN Bureau. Updated: 8/29/2022 12:31:33 PM Business and Economy

NEW DELHI, Aug 29: The rupee depreciated 31 paise to an all-time low of 80.15 against the U.S. dollar in early trade on Monday tracking the strength of the American currency and firm crude oil prices.

At the interbank foreign exchange, the rupee opened at 80.10 against the dollar, then lost ground to quote at 80.15, registering a fall of 31 paise from the last close.

On Friday, the rupee closed at 79.84 against the dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.51% higher at 109.35.
Forex traders said the dollar index gained after Federal Reserve Chair Jerome Powell adopted a hawkish tone to battling inflation.

According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the rupee opened on a weak note after a hawkish Powell kept U.S. rate hikes in prominence until inflation falls to 2%.

“With 80 being allowed to be crossed over by RBI, its actions will be watched closely by traders. The next important events are PMI and NFPR of the US which will give an indication as to how the economy and labour markets are behaving,” Mr. Bhansali said.

Global oil benchmark Brent crude futures advanced 0.86% to $101.86 per barrel.
On the domestic equity market front, the 30-share Sensex was trading 966.68 points or 1.64% lower at 57,867.19, while the broader NSE Nifty fell 283.90 points or 1.62% to 17,275.00.

Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth ₹51.12 crore, as per stock exchange data.

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